Archive for October 2013

Young Adults Could Hold Key To Future Home Sales

October 11, 2013 Housing Market Comments Off on Young Adults Could Hold Key To Future Home Sales

The number of adults under the age of 35 living with their parents is at its highest level since 1981. That, combined with the fact that the homeownership rate for those aged 25 to 34 is at an all-time low, means home sales could be greatly impacted as these young adults move out and buy homes of their own. In fact, if population to homeownership ratios return to a level consistent with their historical norms, the 1.8 million individuals currently living at home could equal 590,000 households and nearly 200,000 new homeowners, according to research from Danielle Hale, a research economist with the National Association of Realtors. An additional 200,000 homes sold this year would represent a 4 percent improvement in this year’s projected sales level. More here.



Refinancing Demand Hits Two-Month High

October 10, 2013 Housing Market Comments Off on Refinancing Demand Hits Two-Month High

According to the Mortgage Bankers Association’s Weekly Applications Survey, the Refinance Index rose 2.5 percent last week, reaching its highest level since early August. The spike in refinancing activity is likely tied to decreases in the average mortgage rate after they hit highs for the year in September. In recent weeks, the average contract interest rate for 30-year fixed-rate mortgages has been falling and did again last week. The resulting increase in the Refinance Index pushed total mortgage application demand up 1.3 percent from one week earlier, despite a 1 percent dip in the Purchase Index. The MBA’s weekly survey covers more than 75 percent of U.S. residential mortgage applications. More here.


Housing Market 85 Percent Back To Normal

October 9, 2013 Housing Market Comments Off on Housing Market 85 Percent Back To Normal

Using current permits, home prices, and employment data, the National Association of Home Builders’ Leading Markets Index measures market conditions by comparing them to those that existed before the recession and housing crisis. According to the results of the most recent index, the national housing market is 85 percent back to normal and 52 of the 350 metro areas analyzed have now returned to, or exceeded, pre-recession levels of activity. Rick Judson, NAHB’s chairman, said the index helps illustrate how far the U.S. housing recovery has come and how much further it needs to go. Among the highlights of the report, smaller cities account for 43 of the top 50 markets, though major metros such as Baton Rouge, Honolulu, Oklahoma City, Austin, and Houston also have scores indicating they are now exceeding their previous norms. Of the 350 cities covered by the index, 118 showed levels of activity at least 90 percent of their pre-recession norm. More here.




Americans Cautious But Still Eager To Buy

October 8, 2013 Housing Market Comments Off on Americans Cautious But Still Eager To Buy

The number of Americans who say they’d buy, rather than rent, if they were going to move increased during the month of September, according to Fannie Mae’s September 2013 National Housing Survey. The survey, which polls 1,000 Americans every month via telephone to assess their attitudes toward owning, renting, prices, mortgage rates, the economy, household finances, and overall consumer confidence, found 69 percent of respondents say they’d prefer to buy a home over renting. The number who said they felt it was a good time to buy a house also rose, increasing to 72 percent. Still, the level of optimism about the overall economy has begun to plateau after recent improvements. According to Doug Duncan, senior vice president and chief economist at Fannie Mae, September’s results reflect Americans’ uncertainty about economic policy leading up to the government shutdown and debt ceiling debate. The survey shows that the improvements in consumer housing attitudes witnessed in recent months softened ahead of the government shutdown, Duncan said. How these fiscal policy issues are addressed could impact Americans’ attitudes and influence the economic and housing recovery in October and beyond. More here.

Report Finds More Evidence of Cooling Price Increases

October 7, 2013 Housing Market Comments Off on Report Finds More Evidence of Cooling Price Increases

Home prices rose rapidly through the first half of the year, signaling a rebound and a healthier housing market. But now there is increasing evidence that home prices may be cooling off. According to Trulia’s Price Monitor, asking prices were up 3 percent quarter-over-quarter in September, the smallest gain since February. Jed Kolko, Trulia’s chief economist, said asking prices are the first indicator of where home sale prices are headed and they point to a slowdown. According to Kolko, two thirds of the largest metropolitan areas are experiencing cooling prices and 11 of the 100 largest cities are actually seeing prices begin to slip. Rising mortgage rates, expanding inventory, and less investor activity are among the reasons for the slowing price increases, Kolko said. Year-over-year, home prices were up 11.5 percent, but that number is expected to shrink in coming months. More here.



Housing Affordability & The Declining Homeownership Rate

October 3, 2013 Uncategorized Comments Off on Housing Affordability & The Declining Homeownership Rate

Last year saw improvements in housing construction, sales, prices, and mortgage originations. But the housing market’s rebound in 2012 did not include gains in the homeownership rate. For the fifth straight year, homeownership declined, falling to 63.9 percent – the lowest rate since the survey began in 2005 and lower than any rate recorded in a decennial census since 1970. But, according to Patrick Simmons, director of strategic planning for Fannie Mae’s Economic and Strategic Research Group, 2012 also saw substantial improvements in housing affordability. Simmons believes that, though demand shifted from owning to renting during the housing crisis, those renters are now better positioned to save money to buy a house in the future. And since consumers continue to indicate a preference for owning over renting, Simmons feels the trend bodes well for homeownership sustainability in years to come. More here.

Housing Market Heats Up But Doesn’t Bubble

October 2, 2013 Uncategorized Comments Off on Housing Market Heats Up But Doesn’t Bubble

In a recent New York Times op-ed, economist Robert Shiller argues that – though home prices have risen 18.4 percent in the 16 months leading up to July of this year – the housing market is not entering into another bubble. Shiller, the co-creator of the S&P / Case-Shiller Home Price Index, conducted a survey of recent home buyers to determine whether or not respondents had unreasonable expectations about home prices and the housing market. Shiller found that, though short-term expectations were higher than they have been over the past few years, long-term expectations were fairly modest. Also, nearly 20 percent fewer homeowners responded that they thought real estate was the best investment for long-term holders, indicating that Americans are aware that recent price increases are largely due to the drastic drop experienced during the financial crisis. Overall, Shiller believes Americans are still relatively sober about housing but warns of the risk of a potential bubble mentality developing in the market. More here.

« Older Entries   Recent Entries »